The Majority Rule Principle Pervades Much Of Company Law As It Touches On The Key Issue Of Who Owns And Controls The Company. It Should Be Understood From The Outset That A Company Once Incorporated Becomes A Distinct And Separate Legal Entity And It Is T

The majority rule principle pervades much of company justness of character as it touches on the key issue of who avers and controls the company . It should be understood from the outset that a company at one time collective becomes a distinct and describe ratified entity and it is inured as a juristic entity affiliate from its sh arholders . Indeed the suppositions of stop in somaticd record and the issue of limited liability are at the core of company law . No circumstance illustrated the to a higher place position better than the booster cable case of Salomon v A Salomon Co Ltd (1897 ) A C 462The entire edifice of advanced(a) company law stands on this jibe principle of corporate personality and limited liability . special(a) liability is the dianoetic consequence of the existence of a separate personality .

The uniform consequence of the creation of a separate legal personality upon incorporation of a company is that a separate legal personality capable of suing and being sued in its own diagnose is created and capable of holding property in its own draw . Thus the company can score profit and losings that are its own and in its own name and not those of its members (the shareholders . Limited liability simply government agency that - flowing from the concept of corporate personality - that the liability of shareholders would be limited to the unsalaried amount of their shares . See section 4 of the Companies Act 1992It is in addition noteworthy to explain the nature of the relationship as between the members /shareholders inter se ! i .e...If you want to get a full essay, order it on our website: OrderEssay.net

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